How to make LatAm's Mila exchange work

Author: Danielle Myles | Published: 30 Mar 2012

There's more to Latin America than Brazil. And the Andean countries have been its untold story. Next month is the one year anniversary of the Mercado Integrado Latino-Americano (Mila), the region's first integrated capital market which links the trading platforms of Peru, Colombia and Chile's bolsas.

The business case is infallible. A larger and more liquid capital market provides issuers, investors and intermediaries with more opportunities, raises competition and forces greater efficiencies, creates synergies for technology advancements, and attracts foreign interest. The Andean countries have the added advantage of strong economics. "Peru, Colombia and Chile have been the best performers of all emerging markets in the last two or three years," says Alka Banerjee, S&P Indices' vice-president of strategy and global equity indices. Mexico is conducting Mila viability studies and Panama is an observer to the process. Offering a feasible alternative to Brazil's BM&FBovespa is ambitious, but for the first...